In a strata retirement villages, residents who own a unit pay strata levies to the Owners Corporation and recurrent charges to the village operator.
Strata levies cover the cost of managing and maintaining the common property in the strata scheme and administering the scheme.
Recurrent charges cover services provided by the village operator, such as an emergency call system, advertising, and the village bus and auditing of the village accounts.
Strata levies are set by the owners each year at the annual general meeting of the owner’s corporation. Recurrent charges, on the other hand, are set out in the village contract between each resident and the operator.
A resident is only liable to pay increased recurrent charges if the operator has given notice under Part 7 of the Retirement Villages Act.